Utterback-Abernathy Dynamic Model Of Innovation Analysis
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The concept of innovation
Innovation is a process of creating something new good or service which can be commercialized in the market. This must be satisfied a specific need of a customer at an economical cost. The innovation focus on two main types. They are product innovation and process innovation. The product innovation is introducing something new to the market that can enhance the quality and the range of a product that use by consumers as well as organizations. Eg : computers, mobile phones. The process innovation is a new method of creating and providing good and services. Eg: fast food and assembly lines. There are two models of innovations. They are radical and incremental.
We can called is as disruptive innovation.…show more content… (between, 2014) (WebFinance, Inc, 2016)
Model of innovation. Describe two dynamic models of innovation.
Utterback-Abernathy Dynamic Model
This model explain the dynamic innovation for both product and process. This model follows 3 dynamic phases over the time period.
In this period the product innovation in industry and product class is quite high from the beginning time. During this stage research and development, experimentations and design are done.
• Organizations do not have an exact idea when and where to invest for R & D because in this stage technology and market is fluctuating.
• Competition is based in product feathers
• The technology of the new product is expensive unrefined and the performance is not in good quality.
In this stage the rate of product innovation is decreased and the process of innovations increased.
• The customer need and the interaction to the product are mostly concerned by the producer.
• The market needs and product features are identified and emerge the dominant design
• Competition is based on differentiated product and competition moves to meet the special needs of the…show more content… Value shop
Nature of assets competences and knowledge
Assets are resources that something has economic value which organization can use to achieve the future benefits. This can be divided as tangible, intangible and human. Assets also can be separated by his nature as coreness, imitability and profit analysis.
Competences refers the what capabilities the organization has to differentiate product by using their resources. When the quantity of product is increasing the cost per product is decreasing. The effective and efficient use of resourses make the firm profitable. The competence is the basic source of assets and it helps to build competencies because there is a relationship between assets and competencies. The competences depend on the technical knowledge and market knowledge. The innovative and modern knowledge, the level of the knowledge and the effectiveness of transferring the knowledge to their team members are the factors that adding value to the organization. (SlidePlayer.com Inc., 2016)
Developing a strategic innovation process
Source of innovation
The source of innovations can be identified as two ways. They are functional sources and circumstantial sources. In functional innovations the following factors are